LABOR RELATIONS

Right to self-organization is fundamental right guaranteed by the Constitution and

Labor Code

-right to form, join and assist

-right to participate in lawful concerted activities

Purpose: for collective bargaining(CB) ; or for mutual aid or protection

-right not to form, join or assist

just as no one should be denied the exercise of a right granted by law, so also, no
one should be compelled to exercise such a conferred right.

-right to leave a union and join another union

Who may unionize for purpose of Collective Bargaining?

1. All Employees (Sec 253 Labor Code)

- including employees of non-profit organization

-begins on the 1st day of service for purposes of membership in any LU

-whether employed for a definite period or not

2. Employees of Govt Corporation under Corporation Code

- while all other employees of civil service may only form associations

3. Supervisory Employees -

those who, in the interest of the employer, effectively recommend such managerial
actions if the exercise of such authority is not merely routinary or clerical in nature but
requires the use of independent judgment (Memorize)

- limitation:not eligible for membership in a labor organization of the rank-and-file

employees

Reason: alter ego of the management in making and implementing key decision

Effect of commingling: not a ground for cancellation but removal from the list of
membership

Note: The rank and file union and the supervisors union operating within the same
establishment may join the same federation or national union

4. Aliens

- with valid working permits

-national of a country which grants same or similar rights to Filipinos

 -as certified by DFA or ratified under ILO Convention no. 8 and ILO Convention
no. 98

5. Security Guards

- Manila Electric Co. Vs SOLE, may now freely join a labor organization with the
rank-and-file or the supervisory union, depending on their rank.

Who cannot join, form or assist labor organization?

1. Managerial Employees

- functions:

(1) Effectively recommend managerial actions;

(2) Formulate or execute management policies or decisions; or

(3) Hire, transfer suspend, lay-off, recall, dismiss, assign or discipline

employees

- The mere fact that an employee is designated manager does not ipso facto make
him one. Designation should be reconciled with the actual job description of the
employee (function test) - Paper Industries vs Leguesma

2. Confidential Employees

One who, by the nature of his functions, assists or acts in a confidential capacity, and
who formulates, determines and effectuates management policies in the field of labor
relations.

- Reason for exclusion: access to confidential matters which might jeopardize the
interest that they are bound to protect.

- must relate to labor relations policies,and not from a business standpoint

Exposure to internal business operations of the company is not per se a ground for
the exclusion in the bargaining unit.

3. Non Employees

4. Employee - member of Cooperative

- an owner cannot bargain with himself or his co-owners.

- even though they do not participate in the actual management of the cooperative.
Irrespective of their degree of participation

5. Employees of International Organization

- a certification election cannot be conducted in an international organization to

which the Philippine Government has granted immunity from local jurisdiction. (Intl
Catholic vs Calleja)
 6. High-level or Managerial Government Employees

7. Member of AFP, PNP, jailguards, and firemen

BARGAINING UNIT

a group of employees sharing mutual interests within a given employer unit

Functions of an appropriate bargaining unit:

(1) An ELECTORAL DISTRICT. It marks the boundaries of those who may

participate in a certification election. (2) An ECONOMIC UNIT. They are a group of
employees with community of interests. (3) A SOVEREIGN BODY. It selects the
sole and exclusive bargaining agent

Role of a bargaining unit - exclusive representative

An individual employee or group of employees shall have the right at any time to present
grievances to their employer. - they may form Labor-Mgt Council (by at least majority of
all employees)

CBA Coverage - regular employees entitled to CBA benefits as a matter of law and
contract

A prior agreement can never bind subsequent federations and unions, even if they are
privy.

Reason: curtailment of right to self-organization

Corporate Entities

Two companies having separate juridical personalities shall NOT be treated as a single
bargaining unit

Exception: Pervasive unitary aspect of management prerogative (must life the veil of
corporate fiction)

Spun-Off Corporation - The transformation of companies is a management prerogative

and business judgment which the courts cannot look into unless it is contrary to law, public
policy or morals

Test to determine the constituency of appropriate bargaining unit

1. Globe Doctrine - will of the employees

2. Community or Mutuality of interest

3. Prior collective bargaining history

4. Employment Status

5. Geography or location
 6. Policy of avoiding fragmentation of the bargaining unit

*Confidential EE are to be included in the bargaining unit of Supervisors who are likewise
identified with the management
 UNION REPRESENTATION

Methods of establishing majority status

1. Sole and Exclusive Bargaining Agent (SEBA Certification (as of Sept 7, 2015)

- previously Voluntary recognition

*who? Any legitimate labor organization (LLO)

*where to file? Regional office

- which issued its COR, or certificate of creation of chartered local

Regional Director - to act within ONE DAY from submission of request

*determines WON there is compliance with requirements

What should indicate in the request?

1. names and addresses of the requesting LLO

2. Name and address of the company

3. BU sought to be represented

4. Approximate number of employees in the BU

5. Statement of existence or non-existence of other LLO

- attach in the request is the COR (duly certified by the Union President), or Cert.
of creation (duly certified by the President of the Federation of LLO)

*RD may request copy of payroll

*if there is no compliance with the requirements, RD shall advise the LLO to comply
within 10 days. Failure to comply shall be deemed a withdrawal of request

UNORGANIZED ESTABLISHMENT

Only one LLO

RD to call conference within 5days - submission of list of employees* and

certification of the President

More than One LLO

RD to refer it to certification of election

ORGANIZED ESTABLISHMENT

RD shall refer it to the mediator-arbitrator

 *incomplete documents - RD to refer it to election officer

Complete documents - certification of SEBA

2. Consent Election - voluntarily agreed upon by the parties or without intervention of DOLE

3. Run-Off Election - between the labor unions receiving the 2 highest number of votes in the
certification eletion

*Requisites:

1. valid election

2. 3 or more choices (including no union)

3. None of the contending unions received a majority of the valid votes cast

4. No objections or challenges which if sustained can materially alter the results

5. The total number of votes for all contending unions is at least 50% of all the number of
votes cast

Procedure:

Election officer shall motu proprio conduct a run-off election within ten (10) days from the close
of the election proceedings between the labor unions receiving the two highest number of
votes. Same voters list used in the certification election shall be used in the run-off election.
The labor union receiving the HIGHER number of VALID VOTES cast shall be certified as the
winner.

4. Certification Election

process of determining, through secret ballot, the sole and exclusive representative of the
employees in an appropriate bargaining unit, for purposes of collective bargaining or
negotiation

Who may file for a petition for CE?

1. LLO

2. Employer (when requested and no existing CBA)

3. Local or chapter

4. Federation/ National Union

*principle of bystander

Employer is not a party to CE

Venue: regional office

*Exclusionary rule - first acquired jurisdiction

Organized establishment

1. file petition for CE

2. Med-Arbiter shall automatically conduct CE

Unorganized establishment

1. file verified petition questioning the majority

2. Within the 60-day period before the expiration of CBA (freedom period)

*prohibition of filing outside the freedom period - to ensure industrial peace

*signing of authorization is merely preparatory

3. Supported by written consent of at least 25% of all employees in the BU

*inapplicable to motion for intervention

Intervenors - (1) incumbent BA; (2) LLU

When MI can be filed? (1) organized - prior to the decision of MA; (2) unorganized - during
freedom period

4. Med-arbiter shall automatically order an election

Withdrawal of employees signature:

1. before filing - presumed voluntary

2. After filing - presumed involuntary and wont affect the petition

Procedure after filing:

1. Raffle of case to MA

2. Preliminary conference - 10days (possibility of consent election)

3. Hearings - up to 15days

4. Determine if petition should be dismissed

Grounds:

1. not duly registered or registration has been cancelled with finality

2. One-year bar rule

3. Contract bar rule

4. Failure to submit duly issued charter certificate

5. Negotiation and deadlock bar rule

6. (organized) failure to submit 25% signature requirement

7. Absence of ER-EE

8. Non-appearance for 2 consecutive scheduled conferences despite notice

*commingling is not a ground (automatic removal)

5. Order or decision on the petition - within 10days from last hearing

*(organized, after lapsed of freedom period)

Final and executory - 10days if no appeal

6. Appeal - to the Office of Secretary (except in unorganized, where the petition is granted)

*appeal - within 10days from receipt, file with the Regional Office

*stays the holding of a certification election

*reply - 10days from receipt to the Office of Secretary

Decision of the Secretary

Period to decide: Fifteen (15) days from receipt of entire records of petition

*final and executory within ten (10) days from receipt by parties.

Note: No motion for reconsideration

Implementation: shall not be stayed unless restrained by appropriate court

7. Raffling to election officer

*(24) hours from receipt of notice of final judgment granting conduct of CE

8. Pre-election conference

*notice - 24 hrs from receipt of assignment

*schedule - 10days from receipt of assignment

Employer to submit:

- certified list of employees

-payroll

Eligible Voter

- belonging to the appropriate bargaining unit

-3months prior to the filing

-whether probationary or permanent

Dismissed Employee

*if contested the legality of dismissal at the time of issuance of order - entitled

*not eligible if the dismissal was declared valid in a final judgment at the time of the conduct of
CE
Failure to take part in previous elections is no bar to the right to participate in future elections

All contested voters shall be allowed to vote but their votes shall be segregated and sealed in
individual envelopes.

The basis of determining voters may be agreed upon by the parties

NOTICE:

By election officer or authorized DOLE personnel

In 2 conspicuous places in the company

At least 10days before the actual election

*not subject to waiver

The election shall be set on a regular business day

*if coincide with a strike - will not make it irregular

9. Conduct of Election

Inspection before start of actual voting

- election officer, representatives from the Union and Employer

-polling place, polling booth and ballot boxes

Prohibition on devices that could record or identify the voter or undermine the secrecy and
sanctity of ballot, except those brought in by election officer (sanction: confiscation, to be
returned after election)

Spoiled Ballots - torn, defaced, or contains marking which can lead another to clearly
identify the voter who casts such vote

*if inadvertently made, shall be return to the EO who shall destroy it and give him another
ballot

NOTE: VALID votes excludes spoiled votes, but not abstention

*Abstention - blank or unfilled vote validly cast by an eligible voter

10. Challenging of votes

*placed in a sealed envelope

Shall be passed upon by the mediator-arbiter only if the number of segregated votes will
materially alter the results of the election.
On the spot questions:

1. EO - will rule on any question relating to and raised during the conduct of election

2. MA - will decide on any question of eligibility

Non-appearance = deemed waived

11. Protest by any party in interest

Ground: On the conduct or mechanics of election

How to protest: (1) Record the protest in the minutes of the election proceedings; AND
(2) Formalize and perfect the protest Within five (5) days after the close of the election
proceedings, formalize the protest with specific grounds, arguments before the Med-Arbiter.

Note: Mere technicalities should not be allowed to prevail over the welfare of the workers.

*General Reservation to file protest prohibited

12. Canvassing of votes

*Election conducted in more than one region - Consolidation of results shall be made within
fifteen (15) days from the conduct.

13. Certification of CBA

Double Majority Rule

1. There must be a valid election; and

Valid Election: At least majority of the number of eligible voters have casted their votes

2. The winning union must garner majority of the VALID votes

Winning union certifies as SEBA if there is no protest, within 5days from election

*if winning choice is local chapter w/o COC - must submit COC within five (5) days from
the conclusion of election

Failure of Election:

1. Number of votes cast is less than the majority of the number of eligible voters; AND

2. No material challenged votes

*file motion for another certification or consent election within 6 months

*same guidelines and list of voters

*notice